Archived entries for rest of world

In our earlier analysis, we looked at Facebook’s emerging market average revenue per user (ARPU). We saw that while Asia and rest of world regions showed the highest rate of user base growth, they also showed the lowest ARPU. After two quarters, we can reassess Facebook’s ARPU story, taking a closer look at user growth trends and concurrent ARPU, while also considering the affect of mobile monetization in Facebook’s fastest growing regions.

Facebook continues to see healthy user base growth in its emerging markets. In the past two quarters, Facebook’s user base in Asia and rest of world regions, measured by monthly active users (MAUs), grew by 8.6% and 7.6%, respectively. Facebook saw 298 million MAUs in Asia in the quarter, and 304 million MAUs in rest of world region in the quarter. Combined, these regions represent 57% of Facebook’s overall MAUs. In absolute terms, Asia and rest of world regions continue to outgrow Facebook’s established markets.1

The average revenue per user story for Facebook’s emerging markets over the past two quarters is more positive, showing good revenue growth relative to user base growth in Asia and rest of world. In the third quarter, the company averaged $0.58 per user in Asia and $0.47 per user in rest of world region. In the fourth quarter, Facebook averaged $0.69 per user in Asia, and $0.56 per user in rest of world. Accordingly, the company saw a 5% and 18% increase in ARPU over the third quarter, respectively.

In addition to its earnings, Facebook provided details of its regional user base numbers, as well as average revenue per user (ARPU) by region. Predictably, Facebook claims that its highest user growth regions are Asia and rest of world. However, Facebook’s data also demonstrates a disparity between user growth and ARPU in these regions. While user growth continues to rise, outpacing its other regions, revenue in these regions remains low.

Over the past nine quarters, Facebook’s monthly active users in Asia has increased 166% from 96 million to 255 million in the second quarter 2012. Asia region daily active users increased 187% over the past nine quarters, from 45 million to 129 million. Rest of world region shows similar growth trends: monthly active users increased 173% (98 million to 268 million), while daily active users increased 231% (42 million to 139 million).1

While Facebook shows a consistent increase in user base in Asia and rest of world during the last nine quarters, ARPU has grown less consistently. During the second and third quarter 2010, Facebook generated $0.36 per user in Asia. At its height, the company earned $0.56 per user; however, during the first quarter 2012 Facebook earned only $0.53 per user, and during the second quarter 2012, that number increased only slightly to $0.55 per user.

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Continuance, a Facebook analysis blog, explores operational and financial indicators to evaluate Facebook and its stock performance, and evaluates trends in social networking and mobile communications.